The company is one of the constituent members of Nagina Group of Companies. It's manufacturing facilities include 24,960 spindles. The expansion of the mill by addition of 13,416 spindles has been completed and the new extension came into operation during October, 2003 ie after the date of the accounts under review.
During the year under review, its sales increased, average export sales realisation also increased and so was the case for average local sales price realisation.
But cost of sales shot up substantially. So gross and operating profits were lower. However the positive figure in the financial charges - net, was written favourably as income and this turned the lable producing higher profit than preceding year's.
For the forthcoming FY 2003-04, the directors are optimistic because of economic revival in the USA and this will result in general economic revival.
Ellcot Spinning Mills was incorporated as a public limited company in the province of Punjab.
This is a textile spinning unit of Mouza Rossa District Kasur, Punjab. Its principal business is manufacture and sale of yarn as well as generation and sale of electricity.
The registered office of the company is located at Nagina House Gulberg III Lahore. It is one of the constituent members of Nagina Group of Companies and it is a subsidiary of Nagina Cotton Mills Ltd.
It is quoted on stock exchanges at Karachi and Lahore. It was listed at Karachi Stock Exchange in 1990.
During the last 52 weeks the market value of its shares soared more than two times from Rs 12 to Rs 24.50 per share.
During the financial year ended 30th September 2003, (FY 2002-03) the company's sales in terms of value increased by 7.37% to Rs 814.74 million from Rs 758.84 million posted in the preceding FY 2001-02.
The net sales value of yarn increased by 4.7% to Rs 701.73 million (2002: Rs 670.28 million). Average sales price per kg of yarn realised during the year increased by 11.79% over the previous year.
In terms of quality, yarn sales were lower by 6.35%. The amount of yarn exports also registered decline.
Export sales were lower by 6% at Rs 368.87 million from Rs 392.43 million in the preceding year. Average export realisation per kg increased by 11.92% against the previous year's.
Average local sales realisation of yarn was higher by Rs 10.60 per kg. During the year 808.7 thousand meters of grey fabrics were exported valued at Rs 35.6 million (2002: Nil).
While the rise in sales amount was 7.37% the increase in cost of sales was more by 13.0%. Inevitably gross margin came under pressure and declined by 4.46 percentage points to 11.39% from 15.85% in the preceding year.
Operating expenses were lower by Rs 5.27 million. Even then operating profit did not came near to the preceding year's and was lower by Rs 22.27 million.
But Pre Tax Profit increased by Rs 4.53 million to Rs 52.92 million from Rs 48.39 million in the preceding year.
This change in position was brought by the positive figure of financial charges (net) favourably written as income figure.
The net profit after taxation produced Earning Per Share (EPS) at Rs 4.40 per share and the prevailing market price of the share more than 4 times of EPS exhibiting the confidence of investors in the enterprise.
The financial position's robustness is manifest from its easy solvency, liquidity ratios.
The directors recommended payment of cash dividend at 15% to those shareholders whose name appear on the Register of Members on 17th January 2004. Amount of Rs 16.43 million has been appropriated for the same.
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Performance Statistics (Million Rupees)
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30 September 2003 2002
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Share Capital-Paid-up: 109.50 109.50
Reserves & Surplus: 134.65 102.88
Shareholders Equity: 244.15 212.38
L.T Debts: 203.51 63.14
Deferred Liability: 15.55 15.61
Current Liabilities: 540.15 426.09
Fixed Capital Expenditure: 471.77 309.66
L.T Deposits: 0.40 0.45
Current Assets: 531.19 407.11
Total Assets: 1,003.36 717.22
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Sales, Profit & Pay Out
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Sales-Net: 814.74 758.84
Gross Profit: 92.80 120.34
Operating Profit: 44.72 66.99
Other Income: 1.37 3.91
Financial (Charges)-Net: 9.90 (14.84)
(Depreciation): (31.12) (33.55)
Profit Before Taxation: 52.92 48.39
Profit After Taxation: 48.19 42.66
Dividend Cash @ 15%: (16.43) (16.43)
Earnings Per Share (Rs): 4.40 3.90
Share Price (Rs) Dated 12.01.2004: 21.10 -
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Financial Ratios
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Price/Earning Ratio: 4.79 -
Book Value Per Share: 22.30 19.39
Price/Book Value Ratio: 0.95 -
Debt/Equity Ratio: 45:51 23:77
Current Ratio: 0.98 0.96
Asset Turn Over Ratio: 0.81 1.06
Days Inventory: 80 45
Gross Profit Margin (%): 11.39 15.85
Net Profit Margin (%): 5.91 5.62
R.O.A (%): 4.80 5.94
R.O.C.E (%): 10.40 14.65
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Plant Capacity & Production (Million Kgs)
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A) Yarn 100% Capacity
At 30/s Count: 5.988 5.988
Actual Production
Converted to 30/s Count: 5.512 5.439
Capacity Utilization (%): 92.05 90.83
B) Number of Spindles
Installed/Worked: 24,960 24,960
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COMPANY INFORMATION: Chairman: Shaikh Enam Ellahi; Managing Director/Chief Executive: Shafqat Ellahi Shaikh; Director: Shahzada Ellahi Shaikh; Company Secretary: Sheikh Muhammed Shafi; Chief Financial Officer (CFO): Muhammad Akram Chaudhry; Registered Office: Nagina House 91-B1, M.M. Alam Road Gulberg III Lahore-54660; Factory: Mouza Rossa, Manga Mandi Raiwind Road Tehsil & District Kasur (Punjab).
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